Big Bid

Discussion in 'Business Operations' started by Duekster, Aug 23, 2012.

  1. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Messages: 7,961

    What do you guys consider a big bid?

    I have a chance to bid maintenance on a job site that is well over twice the size of anything I have in my portfolio.

    Exciting, as it would be a game changer for me but at the same time you want to get the pencil sharp. :drinkup:
  2. alldayrj

    alldayrj LawnSite Gold Member
    Messages: 3,793

    Big is Relative. If its 2x your previous, its big. Good luck on it. I've gone on a few "big" estimates this year. Got two of them. Its hard to act like its no big deal when inside Youre nervous but confidence closes sales
    Posted via Mobile Device
  3. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Messages: 7,961

    It is bigger than my next 4 combined :D

    Maybe not that big but big.

    I am confident that I have the credentials. Big jobs like this draw big attention. There seems to be one of the big national companies on site now finishing up the install.

  4. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Messages: 1,783

    we tend to get really tight financially with the larger bids and dont always win with our bid being the lowest. Companies dont always chase the lowest bid. Some do but not all.
  5. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Messages: 7,961

    On big jobs, particularly commercial your cost do go down some... windshield time and such. You are also correct, low bid is not always the winner but you have to be competitive. If you are close, and they want you then you can work out a deal.

    It is no joke, bid high but sell then negotiate to land on a fair price. I find that if I do my job right and they are interested you can work the numbers. Does not always work but when it does it is a good deal typically.

    Well the initial meeting went well I think.
    Picked up on some indications that they do like local companies. IE the Local will take more interest in the property.

    I hope to get in the construction trailer so I can review the prints, see the controller. I see a mix of drip and sprays, as well as reclaimed water. Mix of Turf, and Xeriscape.

    I have won bids where I got interviewed by the Architect, LA and the company. I do not feel I was low bid at all. In fact we kind of negotiated after I broke down some of the cost.

    I am excited since it is so clost to home.
  6. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Messages: 3,465

    if you get ,then lose it make sure it don't kill your business.
  7. muddywater

    muddywater LawnSite Bronze Member
    Messages: 1,813

    100k is big to me. The problem with big jobs, brickman and other national co know there costs to the penny and they are willing to work for a 5% profit margin.

    If you can work a wam on the job, you may be able have an advantage on efficiency.
  8. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Messages: 7,961

    Muddy, I am not sure it will be 100K but close enough in my estimation. It is big enough to gain the nationals attention for sure.

    I try not to act too foolishly. There is always akward moments when growing. I had already made an investment in growth by brining on a new person this spring. My plan included making a second crew next spring. This would thrust me from being short on 40 hours to pushing the guys harder and allowing some OT.

    OT does not scare me because my OH recovery is based on 40 hours. The extra cost of OT is offset after OH is covered. I think this would just help solidify my growth plans and put me in a better position to push for growth next spring.

    I still have to get my numbers right so it is a mute point right now.
  9. TX Easymoney

    TX Easymoney LawnSite Platinum Member
    Messages: 4,082

    We bid a $200k job a few years ago and got the work simply becasue I spent a lot more time job costing and made a better presentation that was much more clear than the big it turns out, I was a little cheaper than they were by a very small amount. They accepted my bid becasue they told me I seemed to have a better grasp on the needs of the client-

    My thought on big jobs is that the large guys have formulas they go by and bid several of these jobs with the intent of only getting one in 4, they seem to bid them high enough, they don't need to get all the work.

    -I seriously doubted that they spent 80 manhours working on the job costing as I did- (I agree that I prob. went way overboard double and triple checking my math, but I was a little rattled at laying out all the money on expenses and not getting paid for 60 days)
    after I figured all the expenses at the end, it was very profitable-even though we had lots of overtime

    if you can work directly for the client and not the Gen.contractor, you would have a much easier time, (in my opinion) as the GC will make the paperwork hell on add-ons and then has a stack of paperwork and releases that must be filled out to get paid-
  10. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Messages: 7,961

    I will be bidding to the client not the GC. I just need to get to the construction trailer to view the prints.

    With commercial it is 60 days, you do the work for a month then invoice on 30 days net.Unless you get other terms like mid-month billing in the service month Gets a little rough in the beginning but once the invoices start things are normal again.

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